Brazil’s New Crypto Tax Hike: Small Traders Lose Out as Govt. Targets Revenue

Brazil’s government has eliminated tax breaks for crypto investors, enforcing a 17.5% flat rate on all digital asset profits—a move that disproportionately impacts small-scale traders.

The policy, introduced via Provisional Measure 1303, removes the previous 35,000-real ($6,300) monthly exemption.

While wealthy investors could see tax cuts (down from rates as high as 22.5%), everyday users now face steeper costs.

Critics argue the change penalizes retail adoption while favoring institutional players.